INEOS Compounds announces process to consolidate its European manufacturing operations

10-13-2009: INEOS Compounds has announced the start of a process to consolidate its European production network with the aim of further strengthening the Company’s position as Europe's leading PVC compounder.

In the UK, the Company has announced that following a review of its business it intends to transfer all remaining PVC compounds production at its Helsby Site, Cheshire to its manufacturing operation at Newton Aycliffe, County Durham. This follows the successful transfer of its flexible PVC compounds production earlier this year.

Elsewhere, in France the Company has announced that it has opened discussions with employee representatives to review the possibility of ceasing production at its facility at Mourmelon-Le- Petit, Marne, and supplying customers from its other manufacturing sites.

Comments Steve Reynolds General Manager for INEOS Compounds: “Through this process we will ensure that our customers continue to benefit from the same high quality products and reliability of supply, and we continue with our ongoing investment programme to improve productivity, product quality and service for our customers around the world.

“Our strategy to pursue the consolidation of our production network is being driven by a focus on underpinning our competitiveness and product offering whilst ensuring we are well placed to respond to ongoing changes in our markets, particularly in the building, construction and automotive sectors.”

The Company is discussing its plans with employees and their representatives through a process of formal consultation.

Concludes Steve: “It is regrettable that through this process a reduction in our workforce may result. We will of course continue to work with employees and their representatives throughout the process, and will ensure that those who may be directly impacted are treated fairly and sensitively. This will include identifying alternative roles within the Company where this is possible.”

Subject to consultation, the Company expects to complete its consolidation process during Q1 2010.